BUDGET DEVELOPMENT/REVENUE MANAGEMENT: CORE COMPETENCY #2:

Budget Development/Revenue Management: Core Competency #2 for Meeting Planners ...

Another installment (chapter) to my Core Competency series and an integral part of the overall Meeting Planning Process.

(As a reminder, mastering a competency to me means one "knows" and can "apply" whatever it is one has learned -- in this case Budget and Revenue Management.)

BUDGET DEVELOPMENT

Budget Development is the establishing, overseeing and tracking of program expenses to ensure a project comes in at or under budget. It is an integral component of the overall planning process and should not be taken lightly.

A meeting planner must know which line items to include in the overall budget, be transparent in reporting all expenditures, and account for any and all overages as they occur. But first you need to know BEFORE you move forward with even the site, search and selection process that money has already been allocated and approved, what that amount is, and if there is any play with that amount should the need arrise.

It’s important to note also that the budget cannot accurately or fully be developed without first knowing and understanding at least the basics behind the goals and objectives of the meeting or event and number of people expected to attend. Then, having narrowed down the preferred destinations and venue types (resort; city, suburban, airport hotels; or conference center, for instance); secured confirmation of room rates, meeting room rentals, audio visual and production fees, food and beverage projections and associated taxes and gratuities; completed air analysis for preferred destinations, ground transportation and many other items associated with the executing of the meeting or event can a budget be established. Adaptations to the program may (and most likely will) be made along the way, but any additional monies required over and above what was originally approved will require approval from the program sponsor/host.

REVENUE MANAGEMENT

Revenue Management comes into play with association or non-profit meetings and events and involves income generated action items like registration fees, sponsorships, silent auctions and so forth in addition to those items started in the above paragraph under Budget Development.

You'll find more in depth information on Budget Development/Revenue Management and typical lines items to include in your budgets in my book, The Meeting Planning Process: A Guide to Planning Successful Meetings, available here through my website or on Amazon at https://www.amazon.com/dp/1535511842.

Take care. Be well. Plan well. Never stop learning.

Mary Jo Wiseman, CMP | Author, The Meeting Planning Process:  A Guide to Planning Successful Meetings